Investor Excitement Wanes Amid Market Boom

Paul Vigna and Tom Lauricella discuss the state of the markets of the first half of 2014, and Brian Fitzgerald looks at Twitter's new CFO.

This transcript has been automatically generated and may not be 100% accurate.

I ... in mm mm mm mm mm ... good morning good morning welcome to MoneyBeat chopping the second half of the year ... I am Paul beanie U S stock market started off the lights turn off the second half the year ... in some style things to the Dow Jones industrial average of more than one hundred points to dine at seventeen thousand number ... will be aiming for now ... Nasdaq the fourteen year high sounds great but still I know well off its all-time high ... although the Essen P five hundred and nineteen seventy one ... also higher markets are looking good right they look great if it is the second half will start in the fridge first step will help starting the second half well everything looks great on those charts right ... why are investors nervous Tom Lauricella dentistry reporter here with this story on hell are you could give God a God so as you strike ... on some of the market peaks some see the ear feels thin ... when sentiment is from Tom or so I showed the sharpest ... market looks great will actually look a gift horse in the now ... boasts its an interesting dynamic out the area was that the investors are having a hard time enjoying the view from these heights ... um you know that the fact is um across the financial markets ... um a lot of things are looking kind of pricey and um you know you while the broad stock market is a little bit expensive not crazy ... um there are pockets in the Standard anonymous added that it's um um the small cap stocks is very expensive write a bio Barnes crazy expensive ... some dividend payers ... very expensive ... um you know so that that's that's making people there's not alot enthusiasm eight of the high yield bonds to guess a very expensive which means the yields a very low ... you're not getting on the high yield bonds high yield you're not getting the accident misnamed right now then we were not getting high heels ... that conduct illustrates a situation that the market is in ... the ... book ... does not a lot of growth out there we note that a corporate profits are not doing great sight kid ourselves ... we head out we had Browning on different about buybacks reducing that ... you are not seen a lot of growth to support the stock prices ... I think dat ... I really think that's a legitimate issue ... we go to the thing is though that all of the forces that lifted the markets to these heights ... bigger than we do not going to end anytime soon Ryan ... of monetary policy globally is getting easier but not even with the dead ... will vacuum the freedom to write other banks is stepping in to pretend you know in the U S economy is growing as an encore E on ... SE do have some profit growth which is why the Essen P is valuation isn't up as much as people might ... like it ... so investors are sort of um um there may be taking a little that of chips off the table ... um whether or not you can you hear that you're you're not to turn help this point we've been saying you know it's ... it's it's it's not enough out there on the horizon to make you think things are collapse when the central banks are prompting everything up and split people saying well a little concerned renown if you look at and we will look for the Vics right I mean the the sort of the Markets called the fear gauge ... to ... measure of options contact me look below it is ... it is that ... is that most humans we had the lowest since two thousandseven last month so things are ... good that that reflects how quiet the markets and the fact is people don't have a lot of reason to do a lot via um you know we we know that when we talk among fund managers said ... things are pre stable was this companies ... so they're just not all reason to do a lot ... central bank policy is Econa change alot anytime soon ... so that leaves the system to drifting along ... grinding higher ... and soon we have more record highs like for like the way to and which is of little nagging gnawing feeling in the back your head that ... is gonna be a correction at some point we haven't had one for years ... you know what is going to come up ... do I wanna be in the position I'm in that ... when the cops I think we will receive a lot of fund managers who were because of taking a little better tips off the table ... it got a little bit of cash on the side ... and at some point something will happen not the market back five ... maybe even ten percent some point today for that forced off a lot and I think most folks would say ... that for there to be buying ... they don't see ... it when they don't see a bear market and you know we were talkin falls recession anytime worse than ever to ... actually right that almost all going very much ... about it when we come back to play as a new chief financial officer will play all the next ... welcome back Twitter this morning named Anthony Noto its new chief financial officer ... Noto was an investment banker at Goldman Sachs more recently a hedge fund ... any helped shepherd the microblogging service to its twenty thirteen IPO ... WSJD deputy tech editor Brian Fitzgerald ... here with the de tails ... Anthony Noto pretty well known name in the markets Yangon on bars Wall Street has the stars and star bangers here he's one of them he did technology but ... TNT or attack Media Telecom at Goldman ... it is well regarded ... um you know being a priest and with the NFL is CFO ... of back to Goldman any re selected he said last month to to join a hedge fund ... um you know he shepherded the IPO in India as bizarre moves the disc so quickly turn around angle go to right the company where you let the IPO ... it does mean you you look at ... the last four months for this guy he is is there John ... yet ... again ... last Friday with the other bazillion would be done with ... the red flags all over the cliff but ... now I think this falls under one of those not in talks to the out of this falls under one of those ... in cases where ... an opportunity some later rises you know you probably want to get out Wall Street try something different and some leaders other opportunity does come it arrives in your doorstep Neena make those forces ... that its lesson in a note of story really that this really for Twitter story when I mean as company and seen so much a cop and in the last ... the most use your time in four months its stock is really taken on the chin ... if the departures alley regarding their number to their operating chief left along with ... of ... course Biden who was head of North American media left ... those duties where were divided up among exec is already at Twitter said that several departures and shake ups there and I do have my Cup double was the CFO Sally Mann and fire their CEO be taken as other job as head of strategic investments ... in we stop to figure out ... you know that that's a big growth opportunities of the least wanted to or Irwin's eleven of the demotion ... it's hard to say right now he is you actually look at their event last few years yes I he'll look in the last two years of the chocolates right right right and it's called flying out says Dr up-to-date up of more than four percent in a news investors like the news ... Yelp is going to get back to revenue dip rapid growth yes they had a lot of growth from inception to the year two ... you have seen that kind of start to level off bright you've seen those numbers to level off a new breed of you to visit with the story ... you know you've talked alot I change Credit why is there a lot to what is actually happening all you local humans are really good point like there if you just look on paper of their revenue numbers are pretty good there last quarter they had a growth than refuse to go broke the news numbers ... I think what Twitter has suffered from ... up north part is this this comparison to Facebook that they can avoid and where Wall Street has been looking face of a scorching numbers in perpetuity ... and it's it's unfair ... Facebook has been putting up those kinds of numbers frightened of their mobile ... Twitter doesn't have that that that's scale hit the deal goes to show those kinds of numbers and so ... the question about Twitter has always been ... if you're an advertising company than you need to show adds to a lot of people ... they don't have the same number people's Facebook so that people start to question whether they extract these can work and therefore whether the revenue strategies can work ... so you know the thing with with Anthony he comes in a unit and they know he comes in a CFO ... hell is he going to be Obel to help the company ... make money build up those big news numbers now ... true that's what his job is tasked with you know was so not sure if if the CEO that solos really ... you know ... Catholic guilt of making money on who's making money for this company that's one of the question right now all we we know that not turning a profit ... and we know that we're not going to turn a profit for a while yelling on the far out of their IPO immuno tech companies usually get nailed the leeway there to to grow so ... here I just think which would earn you're seeing on the other thing we haven't talked about is that all of these advertising acquisitions that they're making right so ... you know it's it's it's it's the narrative here for Twitter is ... trying to build a sustainable business ... we need to be Obel to do it where were not compared to the sort of unfairly in something in some way to look at with Facebook ... in or try to build a sustainable advertising business not slime we've acquired ... the MoPub lobby acquired napping on the most recent ... acquisition of the made um ... you know to ... the old generator on the seventh ... of mobile app install essence of sustainable revenue ... and now they acquired Anthony Noto as well ... Brian thanks very much thanks Paul ... when we come back you know there's a lot in cars on the road these days ... why do you think they are out there ... it's ... thought the jobs market is not rising wages talk about that next don't touch that melts ... welcome back ... videos of the more new cars on the roads these days ... is a reason for that it is not surging job market is not rising wages ... ahead of the Tape columnist Spencer Jacob is with us to break down ... the real reason that auto sales are rising Spencer hell are you ... okay ... ed by buying a new car when the show ... actually to buy the car and a fourteen year old car and finally had to got rear ended got a new one yet in January very very attractive loan couldn't say no to it I think I can be to my car was eighteen years old ... it was more of that animal ... I'm so that's one reason right people waiting in needing to buy new far right but the real issue is a huge hit that it's the loans it's the kinds of loans that are being offered right now ... it's difficult to distill right but affordability is a big big part ... though one ... may see that anywhere really get the look of mortgages of insight that I mean they're in a research are low it's up to that of Number six and over and the numbers refinanced our far below ... the good old days the battle is depending on use a ... cause of the story were really back ... and really be on on some measures where we were back in two thousandsix two thousandseven ... we hit records for car sales in the U S ... and one record that we just broke is ... the ... average months of the car no longer the car loan is ... the lesser monthly payment is but the more risk the lenders to become lighter collateral is an old car and off another with the long pier and talk to a bank ... but ... we are on budget ratio a rapidly ... depreciating asset that's right it will one thing that that lenders Discover Okafor sold the rules have not become tighter yet more car loans the way there for mortgages so that's that's an area that's not regulated ... any more stringent me that it was really ... but the other thing is they discovered that people would rather have you know so the pee their mortgages than up to the car that is in the car store and so ... the default rates did spike on car loans but they turned out not to be as risky ... as other stuff and so they feel little bit safer extending car loans but now you know you've got ... the big is growing area is what's called deep subprime ... they got a call on private stinks up ... the silver the lowest ... credit means that as we've had the most growth from last year ... and the the average credit score more new car buyers is almost back to the lows that it was before the financial crisis so ... you know they're they're being pretty liberal about Excel yes yes I mean that just it ... just doesn't sound healthy especially when you look at ... this and give them the broader trends of the economy growth is not very good ... job market I know of making two thousand jobs a year in its average Etsy mini Will wage growth ... does that dangerous situations these car companies to be ... it's difficult to say you know if rates ... a year from now if rates or a quarter percentage point higher two years from now for one a half percentage points higher ... if you start to see some defaults and things like that ... the start this the ... um that would work auction Ben that marginal buyer there a lot of marginal buyers that today sounds like not be able ... to afford a car and so where is now you're you're just fact that the ... sixteen point eight million cars a year the suspect to this to the peak ... pre boom levels you have a lot of years that were ... worried that you've missed right so you like catching up to the average car ... is over eleven years old to the U S which is record ... and so the car fleet is older ... people do need cars amenities many cars they use to up for other reasons but ... they do need cars and so ... you know you've you've still got this catching up to the tothe of booming housing market multiple pickups of being sold to today's the day that the car companies reported sales the categories on really well that's that's a big moneymaker for the U S car makers in particular ... but it's it's going to take the win that sales for shore ... if they start ... seeing some of these laws go sour and once rates are going up because they ... were actually there Spencer think you're a much thanks ... is it for the MoneyBeat show comeback Mini seat on their of their on Lunch Break and a four o'clock us towards Belgium do not miss it we'll see tomorrow ... 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